by Oren Dorell, USA TODAY

by Oren Dorell, USA TODAY

WASHINGTON -- Japan needs to expand its defense budget because of increasing threats in the northeast Asia, Japanese Prime Minister Shinzo Abe told reporters shortly after meeting with President Obama Friday evening.

"In view of the increasingly severe security environment, Japan is determined to fulfill our responsibilities with the United States," Abe said. Abe met with Obama to talk about several issues and to shore up a security partnership between the two countries.

He said he explained to Obama Japan's need to exercise its right to self defense and to increase its defense budget.

Japan and South Korea, both U.S. allies, have been rattled in recent months by a North Korean testing of long range missiles and a nuclear bomb, weapons North Korea has said are designed to deter the United States.

North Korea has also behaved in belligerent manner towards South Korea, sinking a South Korean patrol ship and shelling South Korean territory. Meanwhile leaders in China, North Korea's chief ally and sponsor, have made territorial claims and sent military vessels to Japan's Senkaku islands, which Japan claims to gave controlled since the 1890s and have long been recognized by the USA as Japanese.

Obama and Abe agreed to promote more defense cooperation between their two countries, Abe said.

Japan will also work with other countries to impress upon China the need to settle disputes through "rule of law and not through intimidation or coercion of countries," Abe said.

Abe also said that he and Obama discussed a free trade agreement for Pacific nation and agreed the Japan would join the negotiations under certain conditions.

In a joint statement, the two countries said that certain industries may be protected in any Trans Pacific Partnership (TPP), which would include Japan, the USA, Australia, New Zealand, Peru and several other countries.

Japan wants to protect its rice and beef producers, and the USA wants to protect certain manufacturing products.

The joint statement said that no "prior commitment to unilaterally eliminate all tariffs" is necessary to join the negotiations. The trade talks were an issue in the recent elections that brought Abe into office.

"During the election campaign I told the Japanese people I would not join TPP negotiations that did not allow sanctuaries" for certain industries, Abe said. "TPP does not presuppose the elimination of sanctuaries."